Sole Proprietorship
Description In a Sole Proprietorship there is only one owner. No matter what name you put the company under you are the responsible party. Legally the owner and the business are the same.
Two Advantages Two advantages to a sole proprietorship would be that they are easy to create and costs are low, and the owner is the company, all responsibilities are under one individual.
Two Disadvantages Two Disadvantages would be that there is no way to bring a partner into the business, it can only have one owner no shareholders etc. The business is not transferrable, it cannot be passed on to family. If the owner dies the company dies with them.
Liability In Sole Proprietorship it is unlimited liability. Meaning that the owner is responsible for any and all …show more content…
Shareholders have both limited liability and tax status of a flow through entity.
Two Advantages Two advantages are that the S-corporation avoids the double taxation of a regular corporation and investors can deduct against their other income because of the flow through entity with taxes.
Two Disadvantages Two disadvantages are that they can have no more than 100 shareholders, and the shareholders must be individuals, charities, estates, trusts, or pension funds, not partners or corporations.
Liability In an S-corporation the shareholders have limited liability and can only lose what they invested.
Income taxes Is a pass through tax entity and the income is paid individually by owners.
Continuity of the organization An S-corporations can exist indefinitely with or without the original founders.
Control This corporation is controlled by a Board of Directors which are normally highly vested shareholders.
Profit retention All profits and losses go to the shareholders.
Limited Liability Company
Description The Limited Liability Company offers a corporation Limited Liability and tax status of a flow through entity. (Pay taxes at an individual
Description In a Sole Proprietorship there is only one owner. No matter what name you put the company under you are the responsible party. Legally the owner and the business are the same.
Two Advantages Two advantages to a sole proprietorship would be that they are easy to create and costs are low, and the owner is the company, all responsibilities are under one individual.
Two Disadvantages Two Disadvantages would be that there is no way to bring a partner into the business, it can only have one owner no shareholders etc. The business is not transferrable, it cannot be passed on to family. If the owner dies the company dies with them.
Liability In Sole Proprietorship it is unlimited liability. Meaning that the owner is responsible for any and all …show more content…
Shareholders have both limited liability and tax status of a flow through entity.
Two Advantages Two advantages are that the S-corporation avoids the double taxation of a regular corporation and investors can deduct against their other income because of the flow through entity with taxes.
Two Disadvantages Two disadvantages are that they can have no more than 100 shareholders, and the shareholders must be individuals, charities, estates, trusts, or pension funds, not partners or corporations.
Liability In an S-corporation the shareholders have limited liability and can only lose what they invested.
Income taxes Is a pass through tax entity and the income is paid individually by owners.
Continuity of the organization An S-corporations can exist indefinitely with or without the original founders.
Control This corporation is controlled by a Board of Directors which are normally highly vested shareholders.
Profit retention All profits and losses go to the shareholders.
Limited Liability Company
Description The Limited Liability Company offers a corporation Limited Liability and tax status of a flow through entity. (Pay taxes at an individual